Peter Cowhey Quoted on Revamping Innovation in the U.S.
US Manufacturing Needs a Makeover, Say Experts
02/27/2012
Shar Adams,
The Epoch Times
WASHINGTON—When California-based telco Qualcomm was ready to go into production for its new display technology for mobile devices, it had to make a decision where to manufacture it. The technology required an expertise in glass products—could the United States do it or would it have to go offshore?
"We decided to build in Taiwan," says Qualcomm founder Dr. Irwin Jacobs, citing two key reasons. First, the Taiwanese were knowledgeable about glass and had a whole "eco-structure" to service the industry.
Second: "Tax policy." The capital saved can go back into investment but not back into the United States, Jacobs said. "If one brings capital back onshore you have to pay the difference between the tax rate paid offshore, which is much, much lower, and the U.S. tax rate, and so that is a disincentive to bring that cash back."
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Peter Cowhey is Dean at IR/PS. He is also the Qualcomm Endowed Chair in Communications and Technology Policy. Dean Cowhey can provide commentary on U.S. trade policy, foreign policy, the future of communications and information technology markets and policy, the internet, biological threats, international corporate strategy, and the microfinance industry to alleviate poverty.
